With SEC report looming, uncertainty over IFRS expected to linger
By Ken Tysiac
Although the release of a long-awaited US Securities and Exchange Commission (SEC) staff report discussing IFRS adoption is imminent, uncertainty over the issue appears certain to linger.
Commission spokesman John Nester said early this week that the report on IFRS adoption for US public companies is expected “soon,” but it will provide an analysis of issues rather than a recommendation to the SEC commissioners on whether to allow or mandate the use of IFRS for US public companies.
International accounting expert Eva Jermakowicz, CPA, Ph.D., chair of the Accounting and Business Law Department at Tennessee State University, predicts that the SEC eventually will require US public companies to use IFRS to file their financial statements.
“The US has to mandate IFRS because the US would become isolated internationally [without it],” Jermakowicz said. “… The US could not remain out of a global system forever.”